I have just started evaluating Mercurial for use within our company and I was playing with MercurialEclipse. When performing a merge the default behaviour of using Eclipse as the diff tool (i.e. 'Use external merge tool for resolving conflicts' is unticked) includes specifying the switch '--config ui.merge=internal:fail' in the merge command. This means that no attempt is made to automatically resolve the simple conflicts. In order to get this automatic merge you have to tell it to 'Use external merge tool for resolving conflicts'. But the drawback of this is that you don't get to use the Eclipse diff tool for resolving harder conflicts.
Would it not be possible to achieve a middle ground, whereby the automatic merge is attempted on simple conflicts, but still the Eclipse diff tool is used for the rest?